Ford Reports First Quarter Earnings of $1.1 Billion

-- Earnings per share 60 cents (excluding accounting change).

-- North America margins improve from fourth quarter; Europe

profitable; South America recovery continues.

-- Ford Credit earnings up 15 percent.

-- Positive operating cash flow and strong balance sheet.



Apr 19, 2001, 01:00 ET from Ford Motor Company

    DEARBORN, Mich., April 19 /PRNewswire/ -- Ford Motor Company (NYSE:   F)
 earned $1.06 billion in the first quarter of 2001.  Excluding adjustments for
 the new Statement of Financial Accounting Standard 133 (SFAS 133), Ford earned
 $1.13 billion or 60 cents per diluted share of common and Class B stock.  That
 compares to $1.93 billion or 90 cents a share from continuing operations in
 the first quarter of 2000, adjusted for the Value Enhancement Plan.
     "Our first quarter performance shows the underlying strengths of Ford
 Motor Company in an uncertain economic environment," said Jacques Nasser,
 president and CEO.  "We have a great team, strong brands, strong products and
 a strong balance sheet.  This combination provided us with the platform to
 produce good results in an unsettled economic environment.  This gives us a
 solid foundation for 2001," Nasser said.
     Ford's first quarter results were bolstered by strong performance from
 Ford Credit, which improved its earnings by 15 percent to $406 million
 (excluding SFAS 133).
     Ford's worldwide vehicle unit sales in the first quarter were 1,805,000,
 down 6 percent from 1,914,000, while revenues declined 1 percent to $42.36
 billion from $42.89 billion a year ago.
 
     AUTOMOTIVE OPERATIONS
     First quarter automotive earnings (excluding SFAS 133) were $748 million,
 down from $1.55 billion a year ago, primarily because of lower unit volumes in
 North America from last year's record levels.  Worldwide automotive revenues
 were $34.65 billion, compared with $36.18 billion a year ago.  Total costs,
 assuming constant volume and mix, were unchanged in the 2001 first quarter
 from a year ago.
     Automotive gross cash at March 31 remained strong, totaling $19.1 billion,
 including $3.3 billion of pre-funding employee benefit expenses through a
 Voluntary Employee Beneficiary Association (VEBA) trust.
     North America:  First quarter earnings in North America were $754 million
 (excluding SFAS 133), compared to $1.67 billion a year ago.  This reflects
 lower industry sales and market share, and higher marketing costs.  First
 quarter 2001 market share and profitability also were negatively affected by
 low availability of the new Ford Explorer and Mercury Mountaineer as
 production of new models ramped up.  Return on sales (ROS) was 3.2 percent for
 the 2001 first quarter, compared with 2.9 percent in the 2000 fourth quarter,
 and 6.2 percent in the year-ago first quarter.  Revenue was $23.66 billion,
 compared to $27.21 billion.
     Europe:  Ford earned $88 million in the first quarter in Europe,
 $91 million better than the first quarter a year ago.  The success of the Ford
 Mondeo and Ford Transit drove volumes higher, which contributed to the
 improvement.  Lower costs as a result of last year's restructuring actions
 also contributed to results.  ROS improved to 1 percent.  First quarter
 revenue was $8.68 billion, a 22 percent increase over $7.13 billion a year
 ago, primarily reflecting the addition of Land Rover.
     South America:  Ford's South American operations generated their sixth
 quarter in a row of improved performance.  In the region, Ford had a loss of
 $53 million, down from a loss of $82 million in the first quarter of last
 year.
     Rest-of-world:  In the rest of the world, Ford's results for the first
 quarter were a loss of $41 million compared to a loss of $30 million a year
 ago.
 
     FORD CREDIT
     Ford Credit earned $406 million (excluding SFAS 133) in the first quarter,
 up from $353 million a year ago.  Including SFAS 133 adjustments, Ford Credit
 had first quarter earnings of $393 million.  Results were up primarily because
 of higher financing volume.  Improvements in investment and other income
 offset higher credit losses primarily associated with the restructuring of
 North American operations and lower net financing margins.
 
     HERTZ
     The Hertz Corporation posted a first quarter loss of $4 million compared
 to a profit of $56 million in the 2000 first quarter.  The loss reflects lower
 pricing and volume as a result of the slowing U.S. economy and higher costs.
 
     OUTLOOK
     In addition to the new Ford Explorer and Mercury Mountaineer, Ford Motor
 Company's new products to be introduced this year include the Ford
 Thunderbird, Lincoln Blackwood and Jaguar X-Type.  Land Rover's Freelander
 also will be introduced to the U.S. this year.
     "We have a tremendous lineup of new products that will continue to enhance
 our strong brands and set us apart from the competition," Nasser said.  "The
 launch of the Ford Explorer and Mercury Mountaineer is off to a good start,
 and should provide great momentum to our North American business.  The
 aggressive restructuring actions we took overseas are beginning to show
 improved results.  We also continue to focus on improving our business
 structure, e-business and customer satisfaction.
     "The net result of our first quarter performance was positive operating
 cash flow in this challenging period and a continuing strong balance sheet.
 Overall, we are confident going forward," Nasser said.
 
     SFAS 133
     SFAS 133 is a new accounting standard for derivative instruments and
 hedging activities that took effect Jan. 1, 2001.  Adoption of the standard
 resulted in a negative, non-cash adjustment to first quarter earnings of
 $72 million, equal to about 4 cents a share.  Including the adjustment, Ford
 earned $1.06 billion or 56 cents a share in the first quarter.
     Investors can hear a review of first quarter results by Henry Wallace,
 Ford Motor Company chief financial officer, on the Internet at
 www.shareholder.ford.com , www.streetevents.com or www.streetfusion.com .
 The presentation will start at 9 a.m. EDT, April 19.
     Ford Motor Company is the world's second largest automaker, selling
 vehicles in 200 markets and with approximately 345,000 employees on six
 continents.  Its automotive brands include Aston Martin, Ford, Jaguar, Land
 Rover, Lincoln, Mazda, Mercury and Volvo.  Its automotive-related services
 include Ford Credit, Quality Care and Hertz.
 
     Statements included herein may constitute "forward looking statements"
 within the meaning of the Private Securities Litigation Reform Act of 1995.
 These statements involve a number of risks, uncertainties, and other factors
 that could cause actual results to differ materially from those stated,
 including, without limitation:  greater price competition in the U.S. and
 Europe resulting from currency fluctuations, industry overcapacity or other
 factors; a significant decline in industry sales, particularly in the U.S. or
 Europe, resulting from slowing economic growth; market acceptance of new
 products; currency or commodity price fluctuations; economic difficulties in
 South America or Asia; higher fuel prices; a market shift from truck sales in
 the U.S.; lower-than-anticipated residual values for leased vehicles; labor or
 other constraints on our ability to restructure our business; increased safety
 or emissions regulation resulting in higher costs and/or sales restrictions;
 work stoppages at key Ford or supplier facilities; and the discovery of
 defects in vehicles resulting in recall campaigns, increased warranty costs or
 litigation.
 
                      Ford Motor Company and Subsidiaries
 
                                   HIGHLIGHTS
 
                                                            First Quarter
                                                         2001          2000
     Worldwide vehicle unit sales of cars and trucks
     (in thousands)
     - North America                                    1,104         1,312
     - Outside North America                              701           602
         Total                                          1,805         1,914
 
     Sales and revenues (in millions)
     - Automotive                                     $34,650       $36,175
     - Financial Services                               7,711         6,719
         Total                                        $42,361       $42,894
 
     Net income (in millions)
     - Automotive                                        $689        $1,552
     - Financial Services                                 370           380
         Income from continuing operations              1,059         1,932
     - Discontinued operation                               -           147
         Total                                         $1,059        $2,079
 
     Capital expenditures (in millions)
     - Automotive                                      $1,357        $1,500
     - Financial Services                                 131           306
         Total                                         $1,488        $1,806
 
     Automotive capital expenditures as a
      percentage of sales                                 3.9%          4.1%
 
     Stockholders' equity at March 31
     - Total (in millions)                            $16,069       $28,419
     - Annualized after-tax return on Common and
        Class B stockholders' equity                     25.7%         27.7%
 
     Automotive net cash at March 31
      (in millions)
     - Cash and marketable securities                 $15,767       $22,848
     - Debt                                            12,036        10,753
        Automotive net cash                            $3,731       $12,095
 
     After-tax return on sales
     - North American Automotive                          3.0%          6.2%
     - Total Automotive                                   2.0%          4.3%
 
     Shares of Common and Class B Stock
      (in millions)
     - Average number outstanding                       1,840         1,206
     - Number outstanding at March 31                   1,830         1,205
 
     Common Stock price (per share)
     - High                                            $31.37        $30.33
     - Low                                              23.75         22.12
 
     AMOUNTS PER SHARE OF COMMON AND CLASS B
      STOCK AFTER PREFERRED STOCK DIVIDENDS
 
     Income assuming dilution
     - Automotive                                       $0.36         $1.27
     - Financial Services                                0.20          0.31
         Total continuing operations                     0.56          1.58
     - Discontinued operation                               -          0.12
         Total                                          $0.56         $1.70
 
     Cash dividends                                     $0.30         $0.50
 
 

SOURCE Ford Motor Company
    DEARBORN, Mich., April 19 /PRNewswire/ -- Ford Motor Company (NYSE:   F)
 earned $1.06 billion in the first quarter of 2001.  Excluding adjustments for
 the new Statement of Financial Accounting Standard 133 (SFAS 133), Ford earned
 $1.13 billion or 60 cents per diluted share of common and Class B stock.  That
 compares to $1.93 billion or 90 cents a share from continuing operations in
 the first quarter of 2000, adjusted for the Value Enhancement Plan.
     "Our first quarter performance shows the underlying strengths of Ford
 Motor Company in an uncertain economic environment," said Jacques Nasser,
 president and CEO.  "We have a great team, strong brands, strong products and
 a strong balance sheet.  This combination provided us with the platform to
 produce good results in an unsettled economic environment.  This gives us a
 solid foundation for 2001," Nasser said.
     Ford's first quarter results were bolstered by strong performance from
 Ford Credit, which improved its earnings by 15 percent to $406 million
 (excluding SFAS 133).
     Ford's worldwide vehicle unit sales in the first quarter were 1,805,000,
 down 6 percent from 1,914,000, while revenues declined 1 percent to $42.36
 billion from $42.89 billion a year ago.
 
     AUTOMOTIVE OPERATIONS
     First quarter automotive earnings (excluding SFAS 133) were $748 million,
 down from $1.55 billion a year ago, primarily because of lower unit volumes in
 North America from last year's record levels.  Worldwide automotive revenues
 were $34.65 billion, compared with $36.18 billion a year ago.  Total costs,
 assuming constant volume and mix, were unchanged in the 2001 first quarter
 from a year ago.
     Automotive gross cash at March 31 remained strong, totaling $19.1 billion,
 including $3.3 billion of pre-funding employee benefit expenses through a
 Voluntary Employee Beneficiary Association (VEBA) trust.
     North America:  First quarter earnings in North America were $754 million
 (excluding SFAS 133), compared to $1.67 billion a year ago.  This reflects
 lower industry sales and market share, and higher marketing costs.  First
 quarter 2001 market share and profitability also were negatively affected by
 low availability of the new Ford Explorer and Mercury Mountaineer as
 production of new models ramped up.  Return on sales (ROS) was 3.2 percent for
 the 2001 first quarter, compared with 2.9 percent in the 2000 fourth quarter,
 and 6.2 percent in the year-ago first quarter.  Revenue was $23.66 billion,
 compared to $27.21 billion.
     Europe:  Ford earned $88 million in the first quarter in Europe,
 $91 million better than the first quarter a year ago.  The success of the Ford
 Mondeo and Ford Transit drove volumes higher, which contributed to the
 improvement.  Lower costs as a result of last year's restructuring actions
 also contributed to results.  ROS improved to 1 percent.  First quarter
 revenue was $8.68 billion, a 22 percent increase over $7.13 billion a year
 ago, primarily reflecting the addition of Land Rover.
     South America:  Ford's South American operations generated their sixth
 quarter in a row of improved performance.  In the region, Ford had a loss of
 $53 million, down from a loss of $82 million in the first quarter of last
 year.
     Rest-of-world:  In the rest of the world, Ford's results for the first
 quarter were a loss of $41 million compared to a loss of $30 million a year
 ago.
 
     FORD CREDIT
     Ford Credit earned $406 million (excluding SFAS 133) in the first quarter,
 up from $353 million a year ago.  Including SFAS 133 adjustments, Ford Credit
 had first quarter earnings of $393 million.  Results were up primarily because
 of higher financing volume.  Improvements in investment and other income
 offset higher credit losses primarily associated with the restructuring of
 North American operations and lower net financing margins.
 
     HERTZ
     The Hertz Corporation posted a first quarter loss of $4 million compared
 to a profit of $56 million in the 2000 first quarter.  The loss reflects lower
 pricing and volume as a result of the slowing U.S. economy and higher costs.
 
     OUTLOOK
     In addition to the new Ford Explorer and Mercury Mountaineer, Ford Motor
 Company's new products to be introduced this year include the Ford
 Thunderbird, Lincoln Blackwood and Jaguar X-Type.  Land Rover's Freelander
 also will be introduced to the U.S. this year.
     "We have a tremendous lineup of new products that will continue to enhance
 our strong brands and set us apart from the competition," Nasser said.  "The
 launch of the Ford Explorer and Mercury Mountaineer is off to a good start,
 and should provide great momentum to our North American business.  The
 aggressive restructuring actions we took overseas are beginning to show
 improved results.  We also continue to focus on improving our business
 structure, e-business and customer satisfaction.
     "The net result of our first quarter performance was positive operating
 cash flow in this challenging period and a continuing strong balance sheet.
 Overall, we are confident going forward," Nasser said.
 
     SFAS 133
     SFAS 133 is a new accounting standard for derivative instruments and
 hedging activities that took effect Jan. 1, 2001.  Adoption of the standard
 resulted in a negative, non-cash adjustment to first quarter earnings of
 $72 million, equal to about 4 cents a share.  Including the adjustment, Ford
 earned $1.06 billion or 56 cents a share in the first quarter.
     Investors can hear a review of first quarter results by Henry Wallace,
 Ford Motor Company chief financial officer, on the Internet at
 www.shareholder.ford.com , www.streetevents.com or www.streetfusion.com .
 The presentation will start at 9 a.m. EDT, April 19.
     Ford Motor Company is the world's second largest automaker, selling
 vehicles in 200 markets and with approximately 345,000 employees on six
 continents.  Its automotive brands include Aston Martin, Ford, Jaguar, Land
 Rover, Lincoln, Mazda, Mercury and Volvo.  Its automotive-related services
 include Ford Credit, Quality Care and Hertz.
 
     Statements included herein may constitute "forward looking statements"
 within the meaning of the Private Securities Litigation Reform Act of 1995.
 These statements involve a number of risks, uncertainties, and other factors
 that could cause actual results to differ materially from those stated,
 including, without limitation:  greater price competition in the U.S. and
 Europe resulting from currency fluctuations, industry overcapacity or other
 factors; a significant decline in industry sales, particularly in the U.S. or
 Europe, resulting from slowing economic growth; market acceptance of new
 products; currency or commodity price fluctuations; economic difficulties in
 South America or Asia; higher fuel prices; a market shift from truck sales in
 the U.S.; lower-than-anticipated residual values for leased vehicles; labor or
 other constraints on our ability to restructure our business; increased safety
 or emissions regulation resulting in higher costs and/or sales restrictions;
 work stoppages at key Ford or supplier facilities; and the discovery of
 defects in vehicles resulting in recall campaigns, increased warranty costs or
 litigation.
 
                      Ford Motor Company and Subsidiaries
 
                                   HIGHLIGHTS
 
                                                            First Quarter
                                                         2001          2000
     Worldwide vehicle unit sales of cars and trucks
     (in thousands)
     - North America                                    1,104         1,312
     - Outside North America                              701           602
         Total                                          1,805         1,914
 
     Sales and revenues (in millions)
     - Automotive                                     $34,650       $36,175
     - Financial Services                               7,711         6,719
         Total                                        $42,361       $42,894
 
     Net income (in millions)
     - Automotive                                        $689        $1,552
     - Financial Services                                 370           380
         Income from continuing operations              1,059         1,932
     - Discontinued operation                               -           147
         Total                                         $1,059        $2,079
 
     Capital expenditures (in millions)
     - Automotive                                      $1,357        $1,500
     - Financial Services                                 131           306
         Total                                         $1,488        $1,806
 
     Automotive capital expenditures as a
      percentage of sales                                 3.9%          4.1%
 
     Stockholders' equity at March 31
     - Total (in millions)                            $16,069       $28,419
     - Annualized after-tax return on Common and
        Class B stockholders' equity                     25.7%         27.7%
 
     Automotive net cash at March 31
      (in millions)
     - Cash and marketable securities                 $15,767       $22,848
     - Debt                                            12,036        10,753
        Automotive net cash                            $3,731       $12,095
 
     After-tax return on sales
     - North American Automotive                          3.0%          6.2%
     - Total Automotive                                   2.0%          4.3%
 
     Shares of Common and Class B Stock
      (in millions)
     - Average number outstanding                       1,840         1,206
     - Number outstanding at March 31                   1,830         1,205
 
     Common Stock price (per share)
     - High                                            $31.37        $30.33
     - Low                                              23.75         22.12
 
     AMOUNTS PER SHARE OF COMMON AND CLASS B
      STOCK AFTER PREFERRED STOCK DIVIDENDS
 
     Income assuming dilution
     - Automotive                                       $0.36         $1.27
     - Financial Services                                0.20          0.31
         Total continuing operations                     0.56          1.58
     - Discontinued operation                               -          0.12
         Total                                          $0.56         $1.70
 
     Cash dividends                                     $0.30         $0.50
 
 SOURCE  Ford Motor Company

RELATED LINKS

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